Bendigo and Adelaide Bank has shared further details about its decision to exit superannuation and sell its super business to Betashares.
Yesterday, it was announced the ETF provider had reached an agreement to acquire Bendigo and Adelaide Bank’s superannuation business and the deal is expected to complete in 2024, subject to regulatory approval.
In a statement, ASX-listed Bendigo and Adelaide Bank said its Bendigo Superannuation Pty Ltd (BSPL) is issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension as part of the Bendigo Superannuation Plan.
BSPL currently has $1.4 billion in funds under administration and 19,000 members.
Chief customer officer consumer banking at Bendigo and Adelaide Bank, Richard Fennell, said “Following a review that considered the interests and needs of our members and the future investment required in the business, the Bank has decided to proceed with the sale of BSPL, in line with the Bank’s strategic imperative of reducing complexity.
“Betashares was selected following a process that took into consideration several factors, including alignment with our own strong customer focus and the ability to enhance member outcomes. As part of this process, the Bank has prioritised a smooth transition to a new provider.
“The Bank believes this transaction is in the best interests of BSPL’s members and will deliver enhanced retirement outcomes for them over time.”
Alex Vynokur, chief executive of Betashares, said: “While our immediate focus for this acquisition is a smooth transfer of ownership, we intend to invest further to extend the existing investment offering, as well as adding further financial education and member tools in order to position the fund for sustainable growth. These initiatives plus a focus on significantly growing the fund’s scale are all aimed at delivering enhanced member outcomes over the longer term.”
Bendigo and Adelaide Bank said it expects minimal disruption to members as a result of the sale and it is further expected that a number of employees will transfer to Betashares to ensure continuity of service and offering to members.
As of September 2023, Betashares manages over $30 billion in assets.
It is the largest ETF provider in Australia with 35 per cent of market share, ahead of Vanguard (28.9 per cent) and iShares (21.8 per cent) as of August 2023.
